SANTA CLARA, Calif.—In a move aimed at creating a global
presence in the protein analysis market—with solutions that will range in cost
from $5,000 to $200,000—Cell Biosciences Inc. announced in September its
acquisition of Alpha Innotech Corp.

A definitive agreement calls for Cell Biosciences to pay
$1.50 per share, or approximately $17.9 million in cash, for Alpha Innotech.
Cell Biosciences will operate the combined facilities and retain the acquired
company's staff.

"This acquisition will create a worldwide sales and
marketing staff of about 50 people," states Cell Biosciences president and CEO
Tim Harkness, who adds that he expects the combined businesses to be cash flow
break-even in 2010.

Founded in 1992, Alpha Innotech offers a broad range of
products, from entry-level gel documentation systems, to systems for
multiplexed fluorescence and proteomics applications. The company claims to
have sold more than 10,000 systems worldwide. In 2008, Alpha Innotech reported
revenues of $17.6 million and was profitable on both an operating and a
net-income basis. Alpha Innotech employs 62 people, primarily at its San
Leandro, Calif. headquarters.

Cell Biosciences is a private life sciences company
established in 2004, and is focused on "revolutionizing protein and biomarker
research." The company's lead product is the CB1000, an automated nanofluidic
capillary-based immunoassay platform designed for ultrasensitive detection and
characterization of oncoproteins and other signaling proteins in ultra-small
biological samples, such as small tumor biopsies, aspirates and blood. As in
Western blot analysis, proteins from complex biological samples are separated,
immobilized, and probed with antibodies. However, the CB1000 system uses an IEF
separation to resolve the various phosphorylation states of signaling proteins.
The separated proteins then are immobilized to the capillary wall using UV
light and probed with primary and secondary antibodies. The secondary antibody
is HRP-labeled, which enables ultrasensitive chemiluminescence detection. Even
low-abundance proteins can be rapidly measured in tiny samples of as few as 25
cells.

The combination of Cell Biosciences and Alpha Innotech will
create a global protein analysis business with a broad product line featuring
both traditional and novel protein analysis technologies. Virtually every
protein research laboratory worldwide would become a potential customer for the
combined entity, Harkness notes.

"This strategic acquisition marks an important milestone in
our plan to create a profitable, high-growth protein analysis business with
global reach. There is a great strategic fit in people, products, technologies,
and customers between Cell Biosciences and Alpha Innotech. I am particularly excited
by the critical mass of talent and industry experience this combination
creates," Harkness says.

Asked about future acquisition plans, he emphasizes that
optimizing results achieved by adding Alpha Innotech to the Cell Biosciences
family comes first, but that longer term, there will be an ongoing assessment.

Ron Bissinger, CEO at Alpha Innotech, adds, "The innovative
technology of Cell Biosciences makes it an ideal partner for Alpha Innotech. I
expect the combined company to create great value for our customers and
employees, and to generate exceptional products for the protein research
community."

The completion of the transaction is subject to customary
terms and conditions, including approval by the stockholders of Alpha Innotech.
The directors, executive officers and certain stockholders of Alpha Innotech,
who collectively hold approximately 33 percent of Alpha Innotech's outstanding
common stock, agreed to vote their shares of Alpha Innotech common stock in
favor of the transaction. The parties expect the transaction to be completed in
approximately 60 days.